Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. The OECD's latest report provides a powerful endorsement of Australia's economic position, highlighting the Albanese Labor government's economic and fiscal strategy, which delivered a soft landing while avoiding a recession and keeping more Australians in jobs. How has the government's responsible budget management allowed the government to manage pressures at the same time as providing cost-of-living relief for Australians?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Grogan for the question and for being part of a united team that's determined to deliver for the Australian people—a sharp contrast with what we see happening over the other side of the chamber. As Senator Grogan says, the OECD's latest report does provide some commentary on how successful the Albanese government has been in navigating some of the economic pressures we've been seeing around the world.

I can see Senator Hume interjecting, and I'm happy to read out the quotes—and there are a number of them—from the OECD about how Australia was able to achieve a soft landing and that we've managed to avoid a recession. Presumably you're all pretty pleased about that over there. This is a favourite for Senator Hume—that is was 'supported by prudent fiscal policy'—and we were able to provide cost-of-living supports to households, and, 'in the absence of this impetus, Australia may well have experienced a recession during 2023-24', showing that the decisions we took at those critical moments to support the economy have been so important.

The economy is growing, wages are up, pay packets are growing at their fastest pace since 2012 and we've got a very low unemployment rate, at 4.1 per cent. We've managed to create 1.2 million jobs—three out of five full-time and four out of five in the private sector—and the smallest gender pay gap on record, as well as a record number of small businesses and solid business investment. We've managed all of that and have been able to invest in those key services, like hospitals, which Senator Wong just took us through, and provided tax cuts, with more tax cuts coming for every taxpayer.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Grogan, first supplementary.

Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

That's a lot of very good news. Perhaps I could now ask about MYEFO. The Albanese Labor government identified a further $20 billion in savings, bringing the total savings and reprioritisation since it came to government to $114 billion. How has this approach allowed governments to invest in cost-of-living relief to assist Australian households?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Again, I thank Senator Grogan for the question, because finding savings across our budget has been an important part of our fiscal strategy, and in MYEFO we did find another $20 billion. Compared to when we came to government, the budget position has improved by more than $233 billion over the seven years, debt is $176 billion lower in 2025-26, and we have saved $60 billion in interest costs on that Liberal debt that we inherited. We've managed to deal with real payments growth, and those savings have allowed us to reprioritise, to repair the budget, to pay down debt and, importantly, to build up the services that those opposite spent their entire time in government tearing down, like hospitals, Medicare, early education and care, and schools—all the services that the people of Australia rely upon.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Grogan, second supplementary.

Karen Grogan (SA, Australian Labor Party) Share this | Link to this | Hansard source

The Albanese Labor government knows how important quality hospital care is for Australians. Last week I know I was delighted to see the Prime Minister reach agreement with the states and territories on additional funding for the nation's public hospital system. How has responsible budget management supported important investments in hospitals and in Medicare to ensure Australians can get the health care when and where they need it?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Grogan for the question. I think all Australians acknowledge that health care and access to health care and affordable health care is a No. 1 priority for all of us, and it has been a focus for the Albanese government, and it is a key part of our ability to provide additional cost-of-living support whilst we deal with the inflation challenge across the economy—investments in urgent care clinics, investments in Medicare and tripling of the bulk-billing rate. We're already seeing the good and positive data coming out of that, with more and more Australians being able to access bulk-billing.

Hospitals are an important part too, and we've reached agreement with the states and territories, provided that additional investment and been able to fund that within making sensible provisions for an agreement like that within MYEFO, and it's because of the approach we've taken—to find savings, to reduce waste, to pay down debt, to deliver surpluses, to lower the deficits—that we're allowed to make these important investments. (Time expired)